Electronics Repair, Refurbishment & Depot Operations worked example

Failure Pareto Cost at 92% share of failures in pareto scope: a worked example

What does the result look like when share of failures in pareto scope reaches 92%? The full calculation is worked below with real intermediate numbers. Use it when failure pareto cost in electronics repair, refurbishment and depot operations is being put through a electronics repair, refurbishment and depot operations weighted-cost review.

The inputs for this scenario

  • RMA units in this failure mode: 100 units (unchanged)
  • Cost per failure occurrence: 45 $ / occurrence (unchanged)
  • Share of failures in Pareto scope: 92 % (raised for this scenario; the documented default is 80)
  • Fixed containment or investigation cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable failure Pareto cost = failure-mode RMA units × cost per failure occurrence × Pareto scope included) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total failure pareto cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for failure cost per rma unit.
  • At this operating point the engine returns 4,140 $ for variable failure pareto cost.
  • At this operating point the engine returns 250 $ for fixed containment or investigation cost.

How this compares with the baseline

  • Against the tool's baseline example, where share of failures in pareto scope sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • A figure at this level is achievable when share of failures in pareto scope is genuinely sustained, not just peaked for a shift. It assumes a single, uniform cost per occurrence, so a failure mode with a wide spread of repair costs needs to be split before the number is trustworthy.

Results at a glance

  • Total failure Pareto cost: 4,390 $ (headline result)
  • Failure cost per RMA unit: 43.9 $ / piece
  • Variable failure Pareto cost: 4,140 $
  • Fixed containment or investigation cost: 250 $

Run it with your numbers

  • Every input above is editable in the live Failure Pareto Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.